As the dynamics of the industry and investments changes attracting private money just keeps getting easier for real estate investors.
Utilizing private mortgage money has many advantages for real estate investors and has become even more important in the last few years as commercial lending has tightened up.
However, the desire to tap private capital has also lead many real estate investors to take many detours from their normal course of business. This has results in expending a ton of resources chasing private lenders with all types of complex marketing strategies, while often causing a slowdown in momentum of actually flipping houses and closing deals.
There are other options for raising funds for flipping houses or acquiring rental properties today but raising private mortgage money really doesn’t have to be that difficult with the right strategy.
In fact, working with private lenders is set to get even easier in the short term. Individuals are desperate to find investments which offer higher returns on their money as stocks and bonds fail to deliver and they don’t all want to jump into real estate investing full time or want to take on rehabbing to capitalize on the current market. What they want is steady income and decent yields. Now that even the Wall Street Journal is reporting on the benefits of private mortgage lending as an investment it is going mainstream and spurring more Americans to seek out opportunities to loan their money to real estate investors.
Instead of having to chase and try and persuade these potential lenders today investors may find decent success in just passively highlighting they are accepting money like this via the web, or even touching base with hard money lenders. Much of this money is flowing through hard money firms which is why they are actively promoting their services again, with some reporting a 409% leap in money being leant.